Professional Documents
Culture Documents
PROSPECTS OF
COOPERATIVE
SOCIETY IN
NIGERIA
1
BY
..
(AKP/WRR/BMG/BUS/ND2007/..)
NOVEMBER 2009
CERTIFICATION
School
of
Administration,
Business
Studies,
department
of
in
Business
__________________
________________
(Supervisor)
Centre Co-ordinator
Date __________
Date __________
DEDICATION
ACKOWLEDGEMENT
To God be the glory for its not by my power nor my might but by His grace
that is superfluous and more than sufficient. I thank Him for making this
programme a reality.
I am also grateful to my supervisor Mr Emmanuel Nelson Bassey for his
painstaking and thoroughness in supervising this project.
I acknowledged the immense support I received from my family especially
my children, their encouragement during the period of the programme.
The cooperation and the encouragement of my supporting staff who always
stand in for me anytime I am away.
ABSTRACT
In this research work, the researcher empirically unveil the
problems and prospects of cooperative society in Oyi
LG in
Retail goods are made available for the consumption of the cooperators as
well as the public at affordable prices.
Bonuses are given to members on patronage which enhance their
personal income.
Cooperative members readily benefited from government and nongovernment organizations of expert advisory services in various ways.
Cooperative enjoys soft loan benefits from the governments, banks and
other similar institutions for the operation of their joint or individual
businesses.
TABLE
OF CONTENTS
Cover page
Title page -
Certification
ii
Dedication
iii
Acknowledgement
iv
Abstract -
vi
Table of content
ix
1.4 HYPOTHESES -
CHAPTER ONE
INTRODUCTION
CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
2.0 ORGANIZATION AND IDEOLOGICAL
ROOTS
2.2 IDENTITY -
10
13
14 2.3
15
18
20
25
28
29
31
32
10
33
34
40
42
CHAPTER THREE
RESEARCH METHODS AND PROCEDURES
3.1 RESEARCH DESIGN
44
3.2 SAMPLING -
46
3.3 POPULATION
47
48
51
52
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION -
11
- 54
-
55
62
63
64
67
68
CHAPTER FIVE
FINDINGS, SUMMARY AND CONCLUSION
5.1 FINDINGS -
5.2 SUMMARY -
5.3 RECOMMENDATION -
71
5.4 REFERENCES
73
12
70
CHAPTER ONE
INTRODUCTION
1.0
14
15
(iii) do the government encourages and supports the formation of cooperative societies by providing subsidies and exemptions.
(iv) Can It exist for long due to a legal entity separate from its
members.
(v) Is the society managed by one person only.
1.2
1.3
17
1.4 HYPOTHESES
It is a conjectural statement of the relationships between two or more
variables. It is testable, tentative problem explanation of the
relationship between two or more variables that create a state of
affairs or phenomenon.
E.C. Osuola (1986 page 48) said hypothesis should always be in
declarative sentence form, and they should relate to them generally
or specially variable to variables.
HYPOTHESIS THUS:
1.
2.
3.
the
research
hypothesis
and
the
ALTERNATIVE
18
Alternative Hypothesis(HI)
1.
2.
19
20
21
CHAPTER TWO
2.0
a political voice. Throughout the second half of the nineteenth century (and
then repeatedly every 20 years or so) there has been a surge in the
number of cooperative organisations, both in commercial practice and civil
society, operating to advance democracy and universal suffrage as a
political principle. Friendly Societies and consumer cooperatives became
the dominant form of organization amongst working people in Anglosphere
industrial societies prior to the rise of trade unions and industrial factories.
Weinbren reports that by the end of the 19th century, over 80% of British
working age men and 90% of Australian working age men were members
of one or more Friendly Society.
23
appropriating
national
and
international-scale
capitalist
2.1
limited
by
shares
or
by
guarantee,
partnerships
or
2.2
IDENTITY
Cooperatives are based on the co-operative values of "self-help, selfresponsibility, democracy and equality, equity and solidarity" and the cooperative principles of voluntary and open membership; democratic
member
control;
member
economic
participation;
autonomy
and
2.3
Let us take one example. Suppose a poor villager has two cows and gets
ten litres of milk. After consumption by his family everyday he finds a
surplus of five liters of milk. What can he do with the surplus? He may want
to sell the milk but may not find a customer in the village. Somebody may
tell him to sell the milk in the nearby town or city. Again he finds it difficult,
as he does not have money to go to the town to sell milk. What should he
do? He is faced with a problem. Do you have any solution for him?
One day that poor villager met a learner of NIOS who had earlier read this
lesson. The learner told him, you see, you are not the only person facing
27
this problem. There are many others in your village and also in the nearby
village who face a similar problem. Why dont you all sit together and find a
solution to your common problem? In the morning you can collect the
surplus milk at a common place and send somebody to the nearby town to
sell it. Again in the evening, you can sit together and distribute the money
according to your contribution of milk. Of course first you have to deduct all
the expenses from the sale proceeds.
That villager agreed to what the learner said. He told everybody about this
new idea and formed a group of milk producers in his village. By selling the
milk in the nearby town they were all able to earn money. After that they did
not face any problem of finding a market for the surplus milk.
This process continued for a long time. One day some body suggested that
instead of selling only milk why not produce other milk products like ghee,
butter, cheese, milk powder etc. and sell them in the market at a better
price? All of them agreed and did the same. They produced quality milk
products and found a very good market for their products not only in the
nearby town but in the entire country.
Just think it over. A poor villager, who was not able to sell five litres of milk
in his village, is now selling milk and milk products throughout the nation.
He is now enjoying a good life.
28
How did it happen? Who made it possible? This is the reward of a joint
effort or cooperation.
The term co-operation is derived from the Latin word co-operari, where the
word co means with and operari means to work. Thus, co-operation
means working together. So those who want to work together with some
common economic objective can form a society which is termed as cooperative society. It is a voluntary association of persons who work
together to promote their economic interest. It works on the principle of selfhelp as well as mutual help. The main objective is to provide support to the
members. Nobody
joins a cooperative society to earn profit. People come forward as a group,
pool their individual resources, utilise them in the best possible manner,
and derive some common benefit out of it. In the above example, all
producers of milk of a village joined hands, collected the surplus milk at a
common place and sold milk and milk products in the market. This was
possible because of their joint effort. Individually it would not have been
possible either to sell or produce any milk product in that village. They had
formed a co-operative society for this
purpose.
29
2.4
Although all types of cooperative societies work on the same principle, they
differ with regard to the nature of activities they perform. Followings are
different types of co-operative societies that exist in our country.
1. Consumers Co-operative Society: These societies are formed to
protect the interest of general consumers by making consumer goods
available at a reasonable price.
They buy goods directly from the producers or manufacturers and thereby
eliminate the middlemen in the process of distribution.
30
also provide loans at low rate of interest to members to construct their own
houses. The Employees Housing Societies and Metropolitan Housing Cooperative Society are examples of housing co-operative society.
2.5
Retailers' cooperative
A retailers' cooperative (known as a secondary or marketing co-operative in
some countries) is an organization which employs economies of scale on
behalf of its members to get discounts from manufacturers and to pool
marketing. It is common for locally-owned grocery stores, hardware stores
and pharmacies. In this case the members of the cooperative are
businesses rather than individuals.
The Best Western international hotel chain is actually a retailers'
cooperative, whose members are hotel operators, although it now prefers
to call itself a "nonprofit membership association." It gave up on the
"cooperative" label after some courts insisted on enforcing regulatory
requirements for franchisors despite its member-controlled status.
Workers cooperative
A worker cooperative or producer cooperative is a cooperative, that is
owned and democratically controlled by its "worker-owners". There are no
32
33
workers and previously unemployed people who wish to integrate into the
labour market.
Social cooperatives are legally defined as follows: no more than 80% of
profits may be distributed, interest is limited to the bond rate and dissolution
is altruistic (assets may not be distributed) the cooperative has legal
personality and limited liability
the objective is the general benefit of the community and the social
integration of citizens those of type B integrate disadvantaged people into
the labour market. The categories of disadvantage they target may include
physical and mental disability, drug and alcohol addiction, developmental
disorders and problems with the law. They do not include other factors of
disadvantage such as race, sexual orientation or abuse.
Type A cooperatives provide health, social or educational services
various categories of stakeholder may become members, including paid
employees, beneficiaries, volunteers (up to 50% of members), financial
investors and public institutions. In type B co-operatives at least 30% of the
members must be from the disadvantaged target groups voting is one
person one vote
34
Consumers' cooperative
A consumers' cooperative is a business owned by its customers.
Employees can also generally become members. Members vote on major
decisions, and elect the board of directors from amongst their own number.
A well known example in the United States is the REI (Recreational
Equipment Incorporated) co-op, and in Canada: Mountain Equipment Coop.
35
36
2.6
iv. Service motive: Co-operatives are not formed to maximise profit like
other forms of business organisation. The main purpose of a Co-operative
Society is to provide service to its members. For example, in a Consumer
Co-operative Store, goods are sold to its members at a reasonable price by
retaining a small margin of profit. It also provides better quality goods to its
members and the general public.
38
39
41
42
2.9
43
enough motivation to the members to put in their best effort and manage
the society efficiently.
iv. Lack of Co-operation: The co-operative societies are formed with the
idea of mutual co-operation. But it is often seen that there is a lot of friction
between the members because of personality differences, ego clash, etc.
The selfish attitude of members may sometimes bring an end to the
society.
45
of
the
country.
46
the country
by
undertaking business
ventures
economic
transportation
business,
low-cost
housing
units
and
48
53
CHAPTER THREE
RESEARCH DESIGN
The research method selected for the study is a combination of a
survey and an industrial study. The survey research method is
described hereunder that:
(i)
(ii)
(ii)
(iii)
56
(v)
(vi)
57
3.2
SAMPLING
Spiegel (1992) observes that sampling theory is a study of the
relationship existing between a population or universe and the
samples drawn from it. The population in this study is from the senior
junior staff of the firms. In order to make conclusions of sample theory
and statistical references to be valid, a sample must be selected as
to be representative of the population (Spiegel,1992). One way in
which a representative sample may be got, is by the process of
stratified random sampling. In this research work, the technique of
simple random sampling is used to select the sample of 100
respondents from each group of the personnel, making a total sample
size of 200.
The list of all senior and junior staff of the firm is from the personnel
department of the company. The numbers were written on a piece of
paper, put in a basket and the papers were folded to cover the
numbers and one of the pieces of paper was selected at a time
without replacing it and any name corresponding to the number
becomes a number of the sample. This method of sampling without
replacement was done until the sample of 100 respondents per group
of personnel was arrived at.
58
3.3
Population
The population, in this study is the totality of the senior and junior
staff of FARMERS COOPERATIVE SOCIETY OYI LG Anambra
State Nigeria.
The sample size is 200 and this number of respondents was chosen
from the population. The rationale for studying a sample rather than
the population includes that:
1.
2.
3.
59
3.4
DATA COLLECTION
Questionnaire
As earlier stated, the primary data collection instrument in this study
is the questionnaire. In the questionnaire method of primary data
collection, heavy dependence is placed on verbal reports from the
subjects to get information on the earnings per share and standard
set.
The questionnaire has a lot of merits. It needs less skill to administer.
Questionnaire can be administered to a big number of individuals at
the same time. Also with a specific research budget, it is usually
possible to cover a broader area. The impersonal nature of a
questionnaire, its structure and standardized wording, its order of
question, its standardized instructions for recording answers might
make one to conclude that it offers some uniformity from one
measurement occasion to another (Selltiz et al, 1976).
Another merit of questionnaire is that subjects may have a bigger
confidence in their anonymity, and thus feel freer to express views
they feel might be disapproved.
60
Also
the
structured
nature
diminishes
both
Interview
The method of communication of the research instrument is by
means of the personal interview. The method has the merit that it
produces a better sample of the population than either mail or the
telephone methods. It also has the merit that it gives a very high
completion and response rates. It has the merit that the interview has
a bigger sensitively misunderstandings by the respondents and gives
a chance for clarification of misunderstood questions. It has the merit
that it is a very feasible method (Selltiz et al, 1976). The personal
interview method has the demerit that it is more costly than the mail
or the telephone methods of communication of a questionnaire.
Observations
In addition to questionnaire and face-to face interviews, observation
was also carried out. This was to enable the researcher to witness by
herself the officers of this firm and to interact with these people.
3.5
FIELD WORK
The researcher and three other field data collectors did the fieldwork.
The field data collectors were other classmates also offering the Parttime ND program, who have also offered research methodology.
63
Table numbers
(b)
(c)
Caption
(d)
(e)
(f)
title.
(g)
(g)
information;
(h)
65
CHAPTER FOUR
4.1 INTRODUCTION
In the previous chapter, the research methods and procedures have
been handled. In this chapter the data presentation and analysis are to
be done. The data is to be presented by means of tables, two simple
bar charts, one histogram and one pie chart to make it amenable for
further analysis. By analysis is meant the act of noting relationship and
aggregating the set of variables with similar attributes and also
breaking the unit of their components (Mills and Walters 1995).
In this research work, the research accepts the contention of Podsakoff
and Dalton (1995) that the factual information from the data can be
used as a basis for reasoning, calculation and discussion.
Apart from the heading above, the other headings in this chapter
include:
Data Presentation,
Percentage analysis
Cross-tabulated analysis
Hypothesis testing
66
SEX
Male
Female
Total
FREQUENCY
150
50
200
Marital Status
Married
Single
Total
130
70
200
AGE
21-30 years
31-40 years
41-50 years
51-60 years
Total
90
90
10
10
200
HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA
OND
HND
FIRST DEGREE
SECOND DEGREE
NIM
TOTAL
10
30
80
20
40
20
200
Angles
subtended
in degree
18
54
144
36
72
36
360
The marital statuses of the 200 respondents it is found that 130 of them
are married while 70 of them are single. For the ages of the 200
respondents they are 21-30 years, 31-40 years, 40-50 years, 51-60
years
with
frequency
of
90,10
67
respectively.
For
the
educational
qualification of the 200 respondents they are diploma, OND, HND, First
Degree, Second Degree, NIM. and they have frequencies of 10, 30, 80,
20, 40 and 20 respectively.
Figure 4.1 below shows the simple bar chart of the data on the sex of the
respondents.
Frequency
16014012010080
60 -40 20
68
Frequency
100 80
60
40
20
MARRIED
SINGLE
Marital status
TABLE 4.3.
69
Status
From figure 4.2 above, it is shown that the married respondents have
the modal frequency of 130 out of the 200 respondents while the
single respondents have the frequency of 70 of them.
FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE
RESPONDENTS.
40
20
0
Frequency
60
80
100
1.0
2.0
3.0
4.0
Age group
Cumulative
Categories Frequency Percentage
Valid
Percent
(years)
Percentage
TABLE 4. AGES OF THE RESPONDENTS
21 TO 30
90
45.0
45.0
45.0
31 TO 40
90
45.0
45.0
90.0
41 TO 50
10
5.0
5.0
95.0
51 TO 60
10
70
5.0
5.0
100.0
Total
200
100.0
100.0
From figure 4.3 above, it is shown that the age classes limit
are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5 years and
50.5-60.5 years with frequencies of 90, 90, 10, and 10 out
of 200 respectively. This shows that this is bi-modal
distribution as the age classes of 20.5-30.5 years and 30. 540.5 years have a frequency of 10.
Figure 4.4 below shows the pie chart of the data on the
highest educational qualifications of the 200 respondents.
FIG.4.4
DIPLOMA
FIRST DEGREE
5%
15%
SECOND DEGREE
10%
20%
HND
80%
FIRST DEGREE
OND
10%
71
Frequency
Percentage
5.0
Valid
Percentage
5.0
Cumulative
Percentage
5.0
10
OND
30
15.0
15.0
20.0
HND
80
40.0
40.0
60.0
FIRST DEGREE
20
10.0
10.0
70.0
SECOND
DEGREE
NIM
40
20.0
20.0
90.0
20
10.0
10.0
100.0
Total
200
100.0
100.0
72
PERCENTAGE ANALYSIS
Table below shows the percentage analysis of the responses to the yes or no
Questions
73
S/
N
QUESTIONS
DOES COOPERATIVE
SOCIETY CREATE
MPLOYMENT TO
MEMBERS?
DO COOPERATIVE
SOCIETY GRANT
CREDIT TO EMPOWER
MEMBERS TO OWN
THEIR OWN BUSINESS?
110
55
90
115
57.5
DOES COOPERATIVE
SOCIETY
CONTRIBUTION TO GDP
?
DOES ADVOCACY AND
LOBBYING FOR BETTER
LEGISLATION ONE OF
THE ROLES OF THE
COOPERATIVE
SOCIETY?
Do cooperative society
offers Better services
to members to enable
them increase their
income?
Cooperative society
helps to Improve
business
entrepreneurial skills
Cooperative society
plays a leading role in
poverty reduction
109
10
11
12
13
YES
NO
TOTAL
TOTAL
IN NUM.
IN %
45
200
100
85
42.
5
200
100
54.5
91
45.
5
200
100
123
61.5
77
38.
5
200
100
155
77.5
45
22.
5
200
100
111
55.5
89
44.
5
200
100
130
65
70
35
200
100
Cooperation is unique
because it promotes.
* Reliance &
* Empowerment
Is Cooperative society
organization owned by
the people and for the
people
Do Cooperative society
put people at the
centre of their business
and not capital.
In cooperative society,
is Welfare of members
is emphasized?
122
61
78
59
200
100
111
55.5
89
44.
5
200
100
128
64
72
36
200
100
111
55.5
89
44.
5
200
100
Do cooperatives
engage in business
activities that touch
members eg
schools building,
credit?
Is Creation of jobs and
empowerment of
150
75
50
25
200
100
100
50
200
200
74
100
50
CROSS- TABULATION 1
The liability of the members is
unlimited
YES
DIPLOMA
OND
HND
FIRST
DEGREE
SECOND
DEGREE
NIM
Total
6
19
60
31
21
100
DONT
KNOW
NO
NO
ANSWER
31
10
43
11
Total
12
19
91
7
9
26
31
21
200
39
939
TABLE 7. Cross-tabulation 2
YES
Total
DIPLOMA
10
OND
HND
FIRST
DEGREE
SECOND
DEGREE
NIM
19
14
75
40
21
104
NO
30
KNOW
47
Total
10
19
91
47
10
40
ANSWER
19
40
21
200
The above table indicates that The society is managed by one person
only. 104 respondents out of 200 said yes. While 40 did not agree
with the fact.
4.4
HYPOTHESIS TESTING
In attempting to arrive at decisions about the population, on the basis
of sample information, it is necessary to make assumptions or guesses
about the population parameter involved. Such an assumption is called
statistical hypothesis, which may or may not be true. The procedure,
which enables the researcher to design on the basis, is sample regards
whether a hypothesis is true or not is called test of hypothesis or test
of significance.
The null hypothesis asserts that there is no significant difference
between the statistics and the population parameters and what ever is
observed difference is there, is merely due to fluctuations in sampling
from the same population. Null hypothesis is thereby denoted by the
symbol H0. Any hypothesis, which contradicts the H0, is called an
alternate hypothesis and is denoted by the symbol H1. The researcher
used chi-square analysis.
76
CHI-SQUARE TEST
The c is one of the simplest and most widely used non-parametric test
in statistical work. It makes no assumptions about the population being
sampled. The quantity c describes the magnitude of discrepancy
between theory and observation i.e. with the help of c test we can
know whether a given discrepancy between theory and observation
can be attributed to chance or whether it results from the inadequacy
of the theory to fit the observed facts. If c is zero, it means that the
observed and expected frequencies completely coincide. The greater
the value of c the greater will be the discrepancy between observed
and expected frequencies.
The formula for computing chi-square is
c = (O-E)2/E
Where,O=Observed frequency
E=Expected or theoretical frequency
4.5
YES
NO
DONT
KNOW
NO
ANSWER
Total
39
50.0
50.0
18
200
Residual
Decision
50.0
-7.0
Accept
Reject
-11.0
Reject
-32.0
Reject
YES
NO
DONT
KNOW
NO
ANSWER
Total
Observed
F
104
40
Expected
F
50.0
50.0
Residual
Decision
54.0
-10.0
Accepted
Rejected
47
50.0
-3.0
Rejected
9
200
50.0
-41.0
Rejected
Residuals
The observed value of the dependent variable minus the value
predicated by the regression equation, for each case. Large absolute
78
values for the residuals indicate that the observed values are very
different from the predicted values.
SOURCE: From the questionnaires administered.
TEST STATISTICS
The society is
managed by
one person
only.
Chi-Square
df
79
73.880
3
94.120
3
CHAPTER FIVE
5.1
FINDINGS
81
82
5.2
SUMMARY
eradication,
wealth
creation,
job
creation
and
rural
5.3
RECOMMENDATION
83
Policy
that
would
re-position
the
Director
of
REFERENCES
Abrahamsen, M.A (1976) Cooperative Business Enterprises MC Craw Hill books
company New York
Frank, R.H Gilorich T & Regan, D.T (1999): "Does studying Economics Inhibit
cooperation" gnu@gnu.org: free software foundation incorporation Boston,
U.S.A.
86
Lawal, T.O 2006: Introduction to modern cooperative management, Akure, alibiEyo&co Ltd.
Olesin, Ayo (2007) "making Cooperative societies work for you", Sunday
business in Sunday Punch Newspaper 18th, February, 2007 pg7.
Rana, J.M 1970: AO,s and principles of cooperatives and Applications in different
Asian countries (in Ilo Reports, Geneva).
87
88